Digital technology is changing the automotive aftermarket industry
For decades, the automotive aftermarket industry has helped keep vehicles on the road with parts, components, chemicals, equipment, and accessories for their maintenance and repair needs. According to a study from Precedence Research released in June 2021, the global automotive aftermarket is predicted to grow from its 2020 figure of $693.80 billion to $950.09 billion by 2027.
Among the growth factors that the study identified was eCommerce, which “has transformed the way a consumer makes a purchase.” To remain competitive within the industry, automotive aftermarket manufacturers – who often partner with both business-to-business and business-to-consumer customers – must adapt to these changes in the economy by developing state-of-the-art digital technology that enhances the overall end-user experience.
As one reporter noted in a recent article in the online news outlet ZDNet, the automotive market is undergoing a rapid transformation that is more decentralized and digital. Digitization of the purchasing experience has permeated the automotive industry, from vehicles to aftermarket parts and service, and embracing this new form of eCommerce is key to the future success and resilience of the automotive industry. According to the writer, as part of the ever-evolving customer buying journey, 80% of customers now do most of their shopping for a new vehicle digitally. And it is estimated that by 2025, more than 25% of global auto sales will be conducted online.
Another study from P&S Intelligence predicted that eCommerce in the automotive aftermarket would experience an increase of 23.3 percent in global revenue by 2030. One of the main factors the study attributes to this forecasted growth will be the online accessibility of product specifications, which enables the customer to select the best option, as well as provides the convenience of online payment and direct delivery.
Manufacturers of automotive aftermarket products and services are now offering digital tools for product selection, such as electronic catalogs; video libraries for tutorials and product showcases; and online platforms for information, guidance and instruction on proper installation and troubleshooting.
For example, at MAHLE Aftermarket Inc., we recently launched an eCatalog that applies digital technology to aid customers in the product selection process. The online global MAHLE Aftermarket eCatalog (catalog.mahle-aftermarket.com) allows aftermarket users, distributors and technicians to search and inquire about parts in any region of the world. The portal is segmented by specialty area for instant access to the latest parts and includes a search engine to identify the best solution based on vehicle application.
The catalog also enables visitors to locate products based on vehicle make, model and type, which include passenger car, commercial vehicle, light commercial vehicle (LCV) and powersports. Further search optimization categorizes products into seven key areas: air conditioning, chemical products, driver cab/body structure, electrical, specialty tools, standard parts/consumables and workshop equipment. Additionally, relevant product part numbers can be entered into the navigation field located at the top of the portal for more specific results.
Digital platforms also provide an online location to centralize and organize important educational information from various sources and in various formats.
In the automotive aftermarket, a digital platform can facilitate the search for general product information, such as features and benefits, technical data and specifications, and tutorials. For example, the MAHLE Video Warehouse (https://videos.mahle-aftermarket.com) is an easy-to-navigate, online portal that houses videos in a virtual warehouse format.
The content is stored behind three main portals: Parts, Tools & Equipment, and eLearning. Optimized search functionality enables the visitor to locate information with relevant keywords or phrases for specific content results. The “Parts” section of the Video Warehouse is segmented into five categories: filtration, gaskets, engine, turbochargers and thermal management. The “Tools & Equipment” section is segmented into four brand categories: ArcticPRO, FluidPRO, ShopPRO and TechPRO. Lastly, the “eLearning” section contains online product training courses suitable for parts specialists, automotive students, technicians, engine builders and general automotive enthusiasts. It is segmented in five categories: engine bearings, gaskets, filters, air conditioning and turbochargers.
Among the recent videos added to the parts section of the Video Warehouse is a three-part series about gasket installation issues for Ford Power Stroke diesel engines for trucks that were raised in warranty claims. In the video series, a MAHLE trained expert provides solutions for each of the challenges presented.
Another video series covers common challenges and solutions related to proper spin-on oil filter installation and operation. The six-part instructional series provides details about oil filter components that affect engine performance and efficiency, especially engine air and fluid circulation. Other topics include extended oil change service cycles and the functionality of MAHLE Aftermarket spin-on filters for conventional and synthetic motor oils.
Lastly, the MAHLE Tech Tool (https://www.techtool.mahle.com/en/home) features detailed information specific to thermal management for passenger cars and commercial vehicles. The online domain features a collection of content in various formats, including video tutorials, product overviews, safety and technical processes and troubleshooting guidance for automotive air conditioning, engine cooling systems and internal components for both applications.
In addition to serving as an educational resource, the Tech Tool provides resources to identify early warning signs of defects or potential component failure. The platform is designed for the user to choose a vehicle category, access detailed information about system circuits, and select individual components within each circuit for start-to-finish, full-service support.
MAHLE Aftermarket provides many examples of how the ongoing development of digital technology not only makes product selection and purchasing easier and more convenient, but also facilitates information that helps the customer identify performance issues, conduct proper installation and repairs, and ensure vehicle safety. Even though this technology has influenced changes in consumer behavior, it has also provided tools to enable automotive service providers to improve their relationships with customers in the comfort and convenience of their own home.
